Home Finance Top 5 Absolute Best Short-Term Investments

Top 5 Absolute Best Short-Term Investments

8 min read
short-term investments

Only one-third of millennials have any investments.

Young people prefer cash. However, you could be growing your savings by making short-term investments.

And yet, many people are scared of investing. It just seems so overwhelming and confusing all of the time.

That’s why we’ve got five of the best short term investment ideas for you to pick. Let’s get started!

1. Savings Accounts

Yes, a savings account is actually a type of investment.

If you’re looking for a secure place to put your money, then a savings account is almost zero-risk.

You’re insured by the FDIC if you set up an account with the bank. If you’re with a credit union, you’re also insured by NCUA.

You can’t lose your money here. If you hold your money for a long time here though, your money will struggle to keep up with inflation.

2. Short-term US Government Bond Funds

Government bonds are not issued by corporations but the Federal government. There are many types of government bonds, such as T-bills, T-bonds and T-notes.

Even though they are not covered by the FDIC protections, they are backed by the US government. Therefore, they can be considered safe investments.

By investing in a short-term bond you only take on a low amount of interest rate risk. As a result, falls and rises in interest rates shouldn’t impact the value of your bonds.

3. Short-Term Corporate Bond Funds

Corporate bonds are issued by corporations rather than the more popular government bonds. Bond funds are the collections of many corporate bonds together.

Must Read:  5 Considerations When Choosing Your Car Dealership Insurance Coverage

These are pretty safe short-term investments. However, your money is not insured by the government if you lose it. You will receive your interest payments at regular times throughout the year.

4. Real Estate Flipping

House flipping has recently reached the same levels it was before the financial crisis of 2008. You can learn more about buy and hold investing in real estate.

Buying and selling homes can be an extremely profitable business. You can quickly turn over properties in under a year if you know what you’re doing.

However, real estate flipping is also high risk. You never know when you’re going to encounter problems or lose money on your investment.

5. Certificates of deposit

Compared with savings accounts, certificates of deposit (CDs) can provide you with surprisingly generous returns on your investment.

CDs are known as “time deposits.” This means that you have agreed to hold the money in your bank account until a certain date. In return, the bank pays you an improved interest rate.

CDs are also insured by the FDIC. Therefore, they are no risk because you cannot lose your money. However, this may not be the best way to raise your interest rate.

The Benefits of Short-Term Investments

You may find the prospect of investing your money for the long-term daunting.

However, you probably didn’t realize that you only short-term investments can also leave you benefiting.

What short-term investments do you have in the bag? Let us know in the comments below!

Facebook Comments

Load More Related Articles
Load More By Sambit Barua
Load More In Finance

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Check Also

Why Acer’s New Waterproof Laptop Fan Matters

For a long time, laptops were judged on their speed and their storage capacity. The faster…